Compliance
By
Shaun
June 24, 2021

The Basics of Metrc Compliance

What Is Metrc?

Marijuana Enforcement Tracking Reporting Compliance is also known as Metrc. It is simply defined as a web-based, state-mandated software platform that was developed by franwell to capture the tracking of the cannabis industry which ranges from the production, manufacturing, distributing and the supply chain of cannabis products.

According to Franwell, Metrc was developed "to create safety and transparency for cannabis industry consumers." To meet their specific laws, each state has slightly different system specifications. The aim is to provide state regulators with transactional and inventory data.

Metrc is the source of truth for all monitored events, but you will need an API for your Metrc-compatible dispensary applications to handle your daily operations to simplify dispensary operations.

Here are the 15 states that use Metrc; Alaska, California, Colorado, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, Ohio, Oklahoma, Oregon, and Washington, D.C.

Why Do Metrc Matter in The Cannabis Industry?

For the identification of diversion, law enforcement authorities use data anomalies in Metrc. If these red flags are too serious, they could spur an inquiry that could lead to operations being shut down and/or heavy fines.

Each licensed cannabis company has unique regulatory requirements for inventory and sales reporting in a Metrc state. An example is California, if you are flagged, you're fine maybe up to 50% average of sales you make daily which is then multiplied by the number of days you are been suspended. Let's make a quick illustration of the example I just gave so this can become clearer. 

Assuming your store performs a daily transaction of $8,000, and your average suspension time is 7 days, you might be receiving a fine that sums up to $28,000. That’s much right, do not forget there will also be lost revenue from being closed. 

 You should note that fines and closures arise only when dispensaries are not thorough in their compliance with cannabis. Metrc has become a valuable tool in the cannabis industry to ensure enforcement and it has an established track record of success.

Getting started with Metrc

If you are using Metrc in a new legal state or have a new dispensary opening in the state of Metrc, here are the key components to get started with Metrc:

  1. All workers need to register and complete training with Metrc.
  2. Make sure that your POS framework combines your Metrc API key and license. 
  3. Log into Metrc to find your API key and search under "API keys" in the upper right corner.
  4. Buy your tags for the plant and/or kit from Metrc.
  5. Sign in to Metrc and begin setting up and verifying tag assignments for goods.
  6. Log in to your sales point and start receiving your newly tagged inventory

You'll need to ensure continuous enforcement between your physical, POS, and Metrc inventories once you're all set up. Your cannabis industry could be practically on the line, so make sure you take advantage of the tools of the industry to keep you from being fined.

Now that you have understood the basics definition and things you need for your cannabis business. We must tell you how you can stay away from been fined;

How to avoid fines and keep your cannabis industry under the Metrc compliance

  1. Report manually to Metrc: With this process, data is exported via a CSV file from your cannabis point of sale program, modified to the correct format, and then uploaded to Metrc manually. This strategy gives you power over when and how information about enforcement is uploaded to the state. This technique is vulnerable to human error and it is labor-intensive, you should also remember.
  2. Report automatically to Metrc after you perform each transaction: Information will be either pushed or pulled from one scheme to the other via an API. After each transaction is done, several cannabis-specific POS systems push through an automated API. Some states mandate reporting immediately after each sale to Metrc.  Some states mandate reporting immediately after each sale to Metrc. Note that this is not required for everyone, simply because not all states require this method.
  3. We suggest using a software solution with a managed API push, which means you send the details of your sale to Metrc when you like unless your state needs real-time Metrc reporting (though most states require daily reporting).

Note: At the end of the day, this approach adds another step which, if forgotten, has compliance consequences. It's a quick operation, however, and ensures that at the end of each day you are compliant, which cannot be assured with automated pushes.


Conclusion

Compliance with Metrc requires time and effort, but it is needed. Your entire staff must completely devote themselves to ensuring that you meet all of your state's regulatory guidelines. ServiceGanja provides a simple way to meet all state regulatory guidelines when it comes to Metrc compliance.

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